The price of Swearengen, Inc., stock will be either $75 or $97 at the end of the year. Call options are available with one year to expiration. T-bills currently yield 7 percent.

b.

Suppose the current price of the company's stock is $86. What is the value of the call option if the exercise price is $81 per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Call value

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